Barry BartonCentre for Environmental, Resources and Energy Law (CEREL)

Electric Vehicles, Conventional Vehicles, and Climate Change Policy

EV New Presentation

Research on transport law and policy within the

Energy Cultures programme:

• B Barton and P Schütte, Electric Vehicle Policy:

New Zealand in a Comparative Context (CEREL,

2015), available www.waikato.ac.nz/cerel

• VTS Purusram, “Cycling Safety in New Zealand:

An Analysis of Law and Policy” (LLM thesis,

University of Waikato, 2015).

• B Barton and P Schütte, “Electric Vehicles:

Promoting Improvements in Transport” [2016]

New Zealand Law Journal 31-35.

• B Barton, “What to Look for in Electric Vehicles

Policy” www.pureadvantage.org (2016).

• B Barton, “Electric Vehicles Policy Announcement:

Strengths and Weaknesses” [2016] New Zealand

Law Journal (forthcoming).

EV New Presentation

Ministry for the Environment, New Zealand’s Climate Change Target (2015).

Road transport emissions are up 69% from 1990.

CO2 emissions from the New Zealand vehicle fleet

From NZ Ministry of Transport Annual Fleet Statistics 2014, p 11.

• Lower GHG emissions

• Less air pollution and noise (in some circumstances)

• Energy security and efficiency

Advantages of EVs from a policy point of view:

• Price

• Limited number of models

• Range limitations

• Charging facilities

• Uncertainty and unfamiliarity

• Little recognition of their benefits and lower adverse effects compared to ICVs.

Barriers to the widespread uptake of EVs:

Effect on GHG emissions if the target is reached:

• GHG reductions from transport would be about 151 kt, ~1.1% of projected national transport sector emissions.

• About 0.28% of NZ’s total national GHG emissions in 2013.

(Assuming that plug-in hybrid EVs actually run on electricity.)

Policy announcement of the Minister of Energy & Transport, 5 May 2016

NZ has about 3,300,000 light vehicles.

NZ adds about 250,000 new light vehicles a year.

• A target of doubling the number of EVs every year to reach 64,000 by 2021, about 2% of current light vehicle fleet.

This is a non-government estimate. No analysis was given to explain the target or the measures that might support it.

Polic

y a

nno

uncem

ent

of 5

May 2

01

6• Extending Road User Charge exemption

on light EVs until they make up 2% of fleet (or until 2021).

• RUC for heavy EVs until they make up 2%.

• Bulk vehicle purchase programme.

• Coordinating to support growth of the charging network.

• Information and promotion campaign.

• Contestable fund $6 m pa to support low emission vehicle projects.

• Allow EVs into bus lanes and high-occupancy lanes.

• Review tax depreciation rates, calculation of FBT, and ACC rules.

• A subsidy.

• In 2014, NZ had 68 EV buses and 1 truck.

• Likely to be effective.

• Network important. It is being delivered by private enterprise ahead of demand.

• Likely to be effective if it is carefully aimed at what changes purchase behaviour.

• Objective uncertain. Good if not just EVs.

• A common incentive overseas, usually with significant subsidies.

• Likely to be important, but work has not started.

• Price does matter.

• Price support measures usually work, but they need to be well designed.

• Measures that reduce the price immediately work better than ones that affect the long-term total cost of ownership.

• Price support measures need to make a substantial difference to the gap between ICV prices and EV prices.

• Long-term policy settings are needed in order to promote investment certainty.

• The equity problem.

• The RUC exemption subsidy.

Price and subsidy: what we know from the research

• Fuel efficiency standards are long-established in most countries.

• Australia and New Zealand are the main exceptions.

• They are efficacious; they work well to change the performance of a country’s vehicle fleet.

• They alter the composition of the whole vehicle fleet.

• They support EVs.

Fuel efficiency measures:

what we know from the research

Fuel efficiency measures

Source:Miller and Façanha (2014).

• In the US, federal tax credits for the purchase of EVs may have zero impact because of the pressure that CAFE standards put on vehicle suppliers.

• In the UK, GHG emissions legislation has been ‘decisive’ and ‘a key driver’ in EV uptake.

Fuel efficiency measures

Sources: US Congressional Budget Office (2012); Element Energy (2013).

• National Energy Efficiency and Conservation Strategy.

• The process for a new NEECS is under way.

• The NZ Emissions Trading Scheme affects vehicle use, not purchase, and only very slightly.

Fuel efficiency measures

Advantages of EVs

MBIE, Importer Margins, 2 July 2016.

One policy measure that would do these things is the feebate system.

• Feebates have a good track record internationally.

• Used in France and other countries.

• Suitable to the New Zealand.

• Complementary to the NZETS.

We need policy measures that will:

(i) address the EV price problem and

(ii) promote fuel efficiency through the whole vehicle fleet.

From: German and Meszler, Best Practices for Feebate Program Design & Implementation, 2010

• Help development of charging facilities

• Purchase EVs for their own fleets.

• Require contractors to use high-performance vehicles (eg as to emissions, renewable transport energy).

• Push central government on climate change, air quality, and fuel efficiency.

• Carry on with work managing transport demand and modes

What can local government do?

• Settlement patterns and urban form.

• Public transport and active transport.

• Biofuels, hydrogen, fuel efficiency, electric vehicles.

Avoid-Shift-Improve

The different components of transport policy.

EV policy is vehicle policy.

• Research provides insight to choose policy measures.

• The international research shows that in NZ we are only partly on the right track.

• We need more research on:

o Whether the RUC exemption is an effective incentive.

o Whether the RUC exemption subsidy plus bus lane privilege will be positive in their effect on attitudes to EVs and EV measures.

o What are the key information and perception needs for potential EV purchasers.

Conclusions

Co-funders:Our main funder: